For FY 2017-18, the slab rate for income tax up to Rs. 5 lakh has gone down from 10% to 5%.

PART I:Income Tax Slab for Individual Tax Payers and HUF (Less Than 60 Years Old) (Both Men and Women)

Income Slab

Tax Rate

Income up to Rs 2,50,000*

No tax

Income from Rs 2,50,000 – Rs 5,00,000

5%

Income from Rs 5,00,000 – 10,00,000

20%

Income more than Rs 10,00,000

30%

Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore.

Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore.

Cess: 3% on total of income tax + surcharge.

*Income tax exemption limit for FY 2017-18 is up to Rs. 2,50,000 for individual and HUF other than those covered in Part(II) or (III)

PART II: Income Tax Slab for Senior Citizens (60 Years Old Or More but Less than 80 Years Old)(Both Men and Women)

Income Slab

Tax Rate

Income up to Rs 3,00,000*

No tax

Income from Rs 3,00,000 – Rs 5,00,000

5%

Income from Rs 5,00,000 – 10,00,000

20%

Income more than Rs 10,00,000

30%

Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh upto Rs.1 crore.

Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore.

Cess: 3% on total of income tax + surcharge.

*Income tax exemption limit for FY 2017-1 is up to Rs. 3,00,000 other than those covered in Part(I) or (III)

PART III: Income Tax Slab for Senior Citizens(80 Years Old Or More) (Both Men and Women)

Income Slab

Tax Rate

Income up to Rs 2,50,000*

No tax

Income up to Rs 5,00,000*

No tax

Income from Rs 5,00,000 – 10,00,000

20%

Income more than Rs 10,00,000

30%

Surcharge: 15% of income tax, where total income exceeds Rs.1 crore.

Cess: 3% on total of income tax + surcharge.

*Income tax exemption limit for FY 2017-18 is up to Rs. 5,00,000 other than those covered in Part(I) or (II)

Please also note that there is also a tax rebate of up to Rs.2,500 for a taxable income up to Rs. 3.5 lakhs.

INCOME TAX SLAB FOR DOMESTIC COMPANIES FOR FY 2017-18 (AY 2018-19)

The tax rate for companies with an annual turnover of up to Rs 50 crore has been brought down to 25% from 30%. Besides the above change, other rates remain the same as were in the previous year. Please see the income tax slab for domestic companies for FY 2016-17.

Income Tax Slab Rates for FY 2016-17(AY 2017-18)

PART I:Income Tax Slab for Individual Tax Payers and HUF (Less than 60 Years Old) (Both Men and Women)

Income Slab

Tax Rate

Income up to Rs 2,50,000*

No tax

Income from Rs 2,50,000 – Rs 5,00,000

10%

Income from Rs 5,00,000 – 10,00,000

20%

Income more than Rs 10,00,000

30%

Surcharge: 15% of income tax, where total income exceeds Rs.1 crore.

Cess: 3% on total of income tax + surcharge.

*Income tax exemption limit for FY 2016-17 is up to Rs. 2,50,000 for individual and HUF other than those covered in Part(II) or (III)

PART II: Income Tax Slab for Senior Citizens (60 Years Old Or More but Less than 80 Years Old)(Both Men and Women)

Income Slab

Tax Rate

Income up to Rs 3,00,000*

No tax

Income from Rs 3,00,000 – Rs 5,00,000

10%

Income from Rs 5,00,000 – 10,00,000

20%

Income more than Rs 10,00,000

30%

Surcharge: 15% of income tax, where total income exceeds Rs.1 crore.

Cess: 3% on total of income tax + surcharge.

*Income tax exemption limit for FY 2016-17 is up to Rs. 3,00,000 other than those covered in Part(I) or (III)

PART III: Income Tax Slab for Senior Citizens (80 Years Old Or More) (Both Men and Women)

Income Slab

Tax Rate

Income up to Rs 2,50,000*

No tax

Income up to Rs 5,00,000*

No tax

Income from Rs 5,00,000 – 10,00,000

20%

Income more than Rs 10,00,000

30%

Surcharge: 15% of income tax, where total income exceeds Rs.1 crore.

Cess: 3% on total of income tax + surcharge.

*Income tax exemption limit for FY 2016-17 is up to Rs. 5,00,000 other than those covered in Part(I) or (II)

Please also note that there is also a tax rebate of up to Rs 5,000 for a taxable income up to Rs 5 lakh.

How to Calculate Income Tax from Income Tax Slabs?

This example explains how to apply tax slabs to calculate income tax for FY 2016-17 (AY 2017-18). Rohit has a total taxable income of Rs 8,00,000. This income has been calculated by including income from all sources such as salary, rental income, and interest income. Deductions under section 80 have also been reduced. Rohit wants to know his tax dues for FY 2016-17 (AY 2017-18).

Income Slab

Tax Rate

Tax Calculation

Income up to Rs 2,50,000

No tax

Income from Rs 2,50,000 – Rs 5,00,000

10% (Rs 5,00,000 – Rs 2,50,000)

Rs 25,000

Income from Rs 5,00,000 – 10,00,000

20% (Rs 8,00,000 – Rs 5,00,000)

Rs 60,000

Income more than Rs 10,00,000

30%

nil

Tax

Rs 85,000

Cess

3% of Rs 85,000

Rs 2,550

Total tax in FY 2016-17 (AY 2017-18)

Rs 87,550

**Please note that Rohit is an individual assesse having an income tax exemption of Rs 2,50,000. For other assesse as mentioned in table Part II and III, the Income tax limit for availing the exemption would be Rs 3,00,000 and Rs 5,00,000 respectively.

In case you formed a manufacturing company, income tax rate of 25% for domestic companies, if set-up and registered after 1 March 2016 and does not claim any tax incentives.In other cases, the tax rates remain unchanged at 30% (plus applicable surcharge and education cess).

PART I:Income Tax Slab For Individual Taxpayers and HUF (Less than 60 Years Old) (Both Men and Women)

Income Slab

Tax Rate

Income up to Rs 2,50,000*

No tax

Income from Rs 2,50,000 – Rs 5,00,000

10%

Income from Rs 5,00,000 – 10,00,000

20%

Income more than Rs 10,00,000

30%

Surcharge: 12% of income tax, where total income exceeds Rs.1 crore.

Cess: 3% on total of income tax + surcharge.

*Income tax exemption limit for FY 2015-16 is up to Rs. 2,50,000 for individual and HUF other than those covered in Part(II) or (III)

PART II: Income Tax Slab For Senior Citizens (60 Years Old Or More but Less Than 80 Years Old)(Both Men and Women)

Income Slab

Tax Rate

Income up to Rs 3,00,000*

No tax

Income from Rs 3,00,000 – Rs 5,00,000

10%

Income from Rs 5,00,000 – 10,00,000

20%

Income more than Rs 10,00,000

30%

Surcharge: 12% of income tax, where total income exceeds Rs.1 crore.

Cess: 3% on total of income tax + surcharge.

*Income tax exemption limit for FY 2015-16 is up to Rs. 3,00,000 other than those covered in Part(I) or (III)

PART III: Income Tax Slab For Senior Citizens (80 Years Old Or More) (Both Men and Women)

Income Slab

Tax Rate

Income up to Rs 2,50,000*

No tax

Income up to Rs 5,00,000*

No tax

Income from Rs 5,00,000 – 10,00,000

20%

Income more than Rs 10,00,000

30%

Surcharge: 12% of income tax, where total income exceeds Rs.1 crore.

Cess: 3% on total of income tax + surcharge.

*Income tax exemption limit for FY 2015-16 is up to Rs. 5,00,000 other than those covered in Part(I) or (II)

Income Tax Slab for Domestic Companies for FY 2015-16 (AY 2016-17)

If you are registered as a company, the income tax slab rates do not apply to you. Domestic companies are taxed at 30% on the total income. A 5% surcharge is payable if income is more than Rs 1 crore but less than Rs 10 crore. If total income is more than Rs 10 crore, 10% surcharge is applicable.

Some Incomes are Taxed at Special Rates

Although total income is taxable at income tax slab rates mentioned above, some incomes are taxed at special rates.